I remember as a first time buyer back in 1998 I wondered whether I needed Home Insurance and toyed with the idea of not buying it. It was a cost I could live without but even then I couldn’t walk away. The risk/reward of not having Home Insurance is far too much. There is no question in my mind, if you own a property of any type, then you will need Home Insurance.
The average price of property in the UK is now astronomical at over £250,000. That makes property – our homes – the most valuable assets we own by a large margin. How could we afford to replace or rebuild them if a flood or fire took hold without insurance? The answer is that most of us couldn’t – I know I couldn’t.
My own house has a rebuild value of £170,000 and contents cover up to £50,000. So if the property was razed to the ground, I’d need to find £220,000 to replace it all and get my home back. I can honestly say I would struggle to even get a mortgage for that amount of money, never mind be able to cover it out of my own pocket. It would be impossible and I have no doubt lead to my financial ruin. That’ll have implication on my family and just isn’t worth the risk if you ask me.
So do you need Home Insurance? Of course you do if you own a property.
Buildings and Contents insurance makes up Home Insurance. It costs around £200 to buy an annual policy in the UK in June 2015. In my view that is cheap compared to the potential benefits it offers.
If you rent a property then you will need Contents Insurance only as the landlord will cover the buildings. Don’t buy buildings insurance if you are renting, it is not your responsibility. And if the landlord tries to make you buy it then look elsewhere for accommodation, it is plain wrong.
The only people that can live without Home Insurance are the very wealthy who can afford to self-insure everything they own because of the cash they have in the bank. The only others that do not buy Home Insurance are those that are trying to save some money – but if you do this it is a gamble and you could lose everything.
To buy Home Insurance, visit http://www.thepropertyinsurer.co.uk/ and get a quote. You can price compare some of the best UK specialist Home Insurance providers and buy online instantly to make sure you are covered. If you have any specialist needs such as flood, subsidence or unoccupied requirements, you will get help here as well.